Canadian Overseas Petroleum Ltd (COPL) has warned it needs to raise new funds by the end of March after disruption to its Wyoming and Barron Flats Shannon unit (BFSU) operations hit production at the start of 2023.
BFSU production only re-started on 30 January 2023 and COPL said a result of the interruption its US affiliate might not meet the upcoming covenants on to its senior credit facility unless new financing is secured.
In a statement, COPL said it does not currently have sufficient working capital for its present requirements and additional financing will be required by March 2023 for it to continue trading.
COPL is working with its advisers to secure a new senior debt facility before that time, it added.
The company said it is also actively negotiating and intends to issue additional 2025 bonds and warrants for a second tranche of Winter Bond financing, which is expected to close in February 2023 to support its near-term capital requirements.
Shares fell 66% to 5.5p.